10-Year Free Cash Flow Projections(showing years 1, 3, 5, 7, 10)
| Year | Year 1 | Year 3 | Year 5 | Year 7 | Year 10 |
|---|
| Revenue | $5.8B | $6.5B | $6.7B | $7.1B | $7.5B |
| EBIT | $1.3B | $1.5B | $1.5B | $1.6B | $1.7B |
| Tax | $264M | $294M | $304M | $318M | $340M |
| NOPAT | $1.1B | $1.2B | $1.2B | $1.3B | $1.4B |
| + Depreciation | $93M | $104M | $108M | $113M | $120M |
| - Capex | $55M | $62M | $64M | $67M | $71M |
| - Δ NWC | $5M | $6M | $2M | $2M | $3M |
| Free Cash Flow | $1.1B | $1.2B | $1.3B | $1.3B | $1.4B |
| Discount Factor | 0.920 | 0.779 | 0.659 | 0.558 | 0.434 |
| Present Value | $1.0B | $951M | $837M | $740M | $616M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.25% | 1.75% | 2.25% | 2.75% | 3.25% |
|---|
| 6.70% | $96.07 | $99.03 | $102.65 | $107.20 | $113.06 |
| 7.70% | $84.88 | $86.79 | $89.05 | $91.77 | $95.11 |
| 8.70% | $76.00 | $77.30 | $78.81 | $80.57 | $82.65 |
| 9.70% | $68.70 | $69.63 | $70.68 | $71.88 | $73.27 |
| 10.70% | $62.56 | $63.23 | $63.99 | $64.84 | $65.81 |
How to read: This table shows how the valuation changes with different WACC (discount rate) and terminal growth rate assumptions. Green = undervalued, Red = overvalued.
Key Assumptions & Drivers• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth6.21%
Year 3 Revenue Growth5.77%
Year 5 Revenue Growth2.25%
Year 7 Revenue Growth2.25%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
Current EBIT Margin22.71%
Terminal EBIT Margin23.21%
Tax Rate19.86%
Historical Capex / Rev0.94%
NWC / Revenue1.57%
Key Drivers: Revenue growth, operating margin expansion, capex efficiency, and working capital management are the primary drivers of cash flow generation. Terminal value assumptions significantly impact final valuation.
Institutional-Grade Methodology
Actual Company Data: Revenue, EBIT, Capex, NWC, Tax Rate, Interest Expense, Beta
Market Assumptions: Risk-free: 4.5% (10Y), MRP: 4.5% (Damodaran 2026), Exit: 18x EV/EBITDA (Industrials sector)
This DCF model is for informational purposes only. Projections are based on assumptions that may not materialize. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.